Uniti Group Inc. · NASDAQ:UNIT
Uniti — Q3 2024 Earnings Presentation
23 slides from Uniti's earnings presentation, Oct 31, 2024
Slide 1: 3Q24 Financial Earnings
3Q24 Financial Earnings October 30, 2024
Slide 2: Forward-looking statements
2 This presentation includes forward - looking statements that are subject to risks and uncertainties that could cause actual future events and results to differ materially from those expressed in the forward - looking statements. Forward - looking statements are typically identified by words or phr
Slide 3: Presenters
3 Paul Sunu Chief Executive Officer Drew Smith Chief Financial Officer & Treasurer Genesis White VP, Investor Relations & Assistant Treasurer
Slide 4: Strategic priorities
4 Be the PREMIER broadband provider Be the TRUSTED communications and security advisor Be the INNOVATIVE wholesale leader OPERATIONS & SUPPORT Be the unwavering foundation that aligns, nurtures and enables us to be our best Focus o diversity and inclusion Prioritize quality and trust. Do it right th
Slide 5: Third quarter highlights
5 Adjusted EBITDAR of $361M, up 2% year to date (1) Strong Strategic Revenue Trends ▪ Continued focus on Strategic & Advanced IP portfolios, which now represent 88% of total Enterprise Market service revenue (3)(4) ▪ Wholesale had solid performance highlighted by high demand from telecom, cable and
Slide 6: 1 Gbps consumer premises passed by type
1,290 1,352 1,396 1,437 1,466 1,485 34 40 48 54 64 77 12 14 15 17 23 33 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1 Gbps Consumer Premises Passed by Type (in 000’s) RDOF PPP Strategic 136K 1 Gbps Consumer Premises Constructed Year to Date 6 1,553 1,595 1,336 1,406
Slide 7: Homes in Kinetic footprint with access to speeds
72% 76% 79% 81% 81% 44% 50% 53% 57% 58% 10% 22% 29% 34% 36% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2020 2021 2022 2023 3Q24 25 Mbps+ 100 Mbps+ 1Gbps % of Homes in Kinetic Footprint with Access to Available Speeds 7
Slide 8: Consumer fiber subscription growth and penetration
23 20 18 17 17 25.8% 26.3% 26.6% 26.9% 27.3% 20% 21% 22% 23% 24% 25% 26% 27% 28% 275 300 325 350 375 400 425 450 475 3Q23 4Q23 1Q24 2Q24 3Q24 401 383 363 418 435 Ended 3Q with Consumers on 1G capable facilities, up 17K from 2Q24 Penetration Consumer Fiber Subscription Growth Shows Strong Adoption of
Slide 9: Newest fiber cohorts showing strong penetration early
< 1 Year Cohorts 18% 16% 22% 15% 15% 20% 22% 25% 26% 27% 24% 29% 28% 26% 23% 23% 29% 22% 21% 26% 27% 29% 30% 30% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 26% 24% 19% 4Q23 1Q24 2Q24 Newest Fiber Cohorts Are Showing Strong Penetration Early Note: Cohort penetration reflect
Slide 10: Financial Overview
Financial Overview 2023 2023 2023 2024 2024 2024 Q3 Q4 YE Q1 Q2 Q3 Revenue and Sales Kinetic Market 530$ 540$ 2,143$ 547$ 529$ 512$ Enterprise Market 346 314 1,369 316 287 279 Wholesale Market 115 103 437 114 100 112 Service Revenue 991$ 958$ 3,948$ 977$ 916$ 903$ Product & Fiber Sales 11 9 39 24 11
Slide 11: TDM Retirement Accelerates Cost Reduction
TDM Retirement Accelerates Cost Reduction and Improves Customer Experience 11 Interconnection Expenses (in millions) 3Q23 3Q24 YoY Annualized Annualized Change % TDM 64$ 32$ (51%) IP/Ethernet 235$ 210$ (10%) Last Mile Access 299$ 242$ (19%) TDM 38$ 9$ (77%) IP/Ethernet 18$ 14$ (22%) Network Access 5
Slide 12: Net liquidity and debt maturity
$0 $0 $0 $0 $1,400 $800 $- $250 $500 $750 $1,000 $1,250 $1,500 2024 2025 2026 2027 2028 2029 2030 2031 $475 Debt Maturity as of November 10, 2022 Revolver Draw Note : Available capacity under credit facility excludes outstanding letters of credit of $133.9 million of which $104.7 million w as issued
Slide 13: Kinetic fully owned and operated metrics
Fiber Route Miles (1)(4) Fiber Broadband Consumers (1) Broadband Consumers (1) Windstream Owns 100GB POPs (1) Fiber Households – Build Plan (1) Fiber Households Today (1) E&W Owned Assets (3) Kinetic Owned Assets (3) Total Consumer Revenues (2) Kinetic Fully Owned and Operated Metrics 208K (20.9%) 1
Slide 14: 2024 Guidance
14 2024 Guidance 2023 Results (all $ in millions) Approximately flat y - o - y (adjusted for ACP expiration) (2) $1,488M Adjusted EBITDAR (1) Approximately $700M $798M Capex, net (3) Approximately $140M $155M Unlevered Free Cash Flow (4) 75K (lowered from previous: “Similar to 2023”) 96K Fiber Consu
Slide 15: Quarterly supplemental schedules (Pro Forma) Appendix
Quarterly supplemental schedules (Pro Forma) Appendix 15
Slide 16: Supplemental Financial Information
Supplemental Financial Information Windstream Holdings 11, LLC ("Windstream”, "we", “us", “our”, or “the Company”) has presented in this Investor Supplement unaudited adjusted results, which excludes depreciation ‘and amortization, straight-line expense under the master leases with Uniti Group, Inc.
Slide 17: Supplemental Financial Information
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Slide 18: Supplemental Financial Information
Supplemental Financial Information WINDSTREAM HOLDINGS I, LLC UNAUDITED ADJUSTED RESULTS OF OPERATI ONTERLY Sr REENTAL DORMATION isin the years 2024 and 202 (NON-GAAP) Galion) Debt Leverage Ratio: -term debt, including current maturities (E) ‘Add: Capital lease obligations ‘and cash equivalents Adju
Slide 19: Supplemental Financial Information
Supplemental Financial Information WINDSTREAM HOLDINGS IL, LLC JARTERLY SUPPLEMENTAL INFORMATION - REVENUE AND ADJUSTED EBITDAR SUPPLEMENT forthe quarterly periods in the yeas 2024 and 2023 (Go millions) Adjusted EBITDAR margin. excoing gin on ale of peasing asets 397% ‘Adjusted EBITDAR mora as om a
Slide 20: Supplemental Financial Information
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Slide 21: Supplemental Financial Information
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Slide 22: Supplemental Financial Information
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Slide 23: Supplemental Financial Information
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